1.5 Suppose you believe that, in general, graduates who have majored in your subject are offered higher salaries upon graduating than are graduates of other programs. Describe a statistical experiment that could help test your belief.

1.6 You are shown a coin that its owner says is fair in the sense that it will produce the same number of
heads and tails when flipped a very large number of times.

a.Describe an experiment to test this claim.

b. What is the population in your experiment?

c. What is the sample?

d. What is the parameter?
e. What is the statistic?

f. Describe briefly how statistical inference can be used to test the claim.

1.7 Suppose that in Exercise

1.6 you decide to flip the coin 100 times.

a.What conclusion would you be likely to draw if you observed 95 heads?
b. What conclusion would you be likely to draw if you observed 55 heads?
c.Do you believe that, if you flip a perfectly fair coin 100 times, you will always observe exactly 50 heads? If you answered “no,” then what numbers do you think are possible? If you answered “yes,” how many heads would you observe if you flipped the coin twice? Try flipping a coin twice and repeating this experiment 10 times and report the results.

1.8 Xr01-08 The owner of a large fleet of taxis is trying to estimate his costs for next year’s operations. One major cost is fuel purchase. To estimate fuel purchase, the owner needs to know the total distance his taxis will travel next year, the cost of a gallon of fuel, and the fuel mileage of his taxis. The owner has been provided with the first two figures (distance estimate and cost of a gallon of fuel). However, because of the high cost of gasoline, the owner has recently converted his taxis to operate on propane. He has measured and recorded the propane mileage (in miles per gallon) for 50 taxis.

a.What is the population of interest?
b. What is the parameter the owner needs?

c. What is the sample?
d. What is the statistic?

e. Describe briefly how the statistic will produce the kind of information the owner wants.

home / study / business / finance / finance questions and answers / johnny appleseed owns a 356 acre fruit orchard with scenic river frontage along the floodsalot ... Your question has expired and been refunded. We were unable to find a Chegg Expert to answer your question. Question: Johnny Appleseed owns a 356 acre fruit orchard with scenic river frontage along the Floodsalot Ri... Johnny Appleseed owns a 356 acre fruit orchard with scenic river frontage along the Floodsalot River which he purchased in 1976. Early in the 1930s, the state government received money from the federal government to be used on projects that would stimulate the economy and create jobs. Starting in 1934, the state began to erect a dam 4 miles upstream from what would become Johnny’s property. The dam was completed in 1939 and provided electricity, water for drinking, flood control and recreational activities on the reservoir. In 1996, the state experienced an unusually rainy winter and that spring, after almost 60 years of reliability, the dam began to show evidence of stress and leaks began to appear. Engineers conducted an emergency inspection of the dam and concluded that water must be released quickly or the valley below might run the risk of a catastrophic flood. Acknowledging that releasing water in the manner recommended would cause some limited flooding, the agency responsible for operating the dam released the water. Sadly, Johnny’s fruit orchard was flooded and, as a result, he lost his crop for that year. In addition, many of the fruit trees in his orchard were damaged beyond repair and Johnny was faced with the expensive prospect of replacing these trees and waiting several years for the trees to mature enough to bear fruit. ASSIGNMENT: Assuming that there has been a “taking” as defined in your textbook, was this a taking under the state’s right of eminent domain (therefore requiring due process and compensation) or a taking under the state’s police powers (therefore no compensation is required)? You decide which taking applies in this case and write a paper defending your decision and how pertinent and relevant your authority is for supporting your position. If anyone could offer me their opinion on what direction to take this in I would appreciate it! To clarify: "taking" means a government seizing or property

Internal Rate of Return Method—Two Projects

Munch N’ Crunch Snack Company is considering two possible investments: a delivery truck or a bagging machine. The delivery truck would cost $48,601.8 and could be used to deliver an additional 54,000 bags of pretzels per year. Each bag of pretzels can be sold for a contribution margin of $0.38. The delivery truck operating expenses, excluding depreciation, are $0.52 per mile for 18,000 miles per year. The bagging machine would replace an old bagging machine, and its net investment cost would be $46,248.75. The new machine would require three fewer hours of direct labor per day. Direct labor is $15 per hour. There are 250 operating days in the year. Both the truck and the bagging machine are estimated to have six-year lives. The minimum rate of return is 11%. However, Munch N’ Crunch has funds to invest in only one of the projects.

a. Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent.

b. The bagging machine rate of return was less  than the minimum rate of return requirement of 11% while the delivery truck rate of return was greater  than the minimum rate of return requirement of 11%. Therefore the recommendation is to invest in the delivery truck .

Problem:

On Monday morning when you enter your law office, you find Dr. Ben Heartache, the fastest scalpel in the West, waiting. He needs legal advice.

Two weeks earlier, Dr. Heartache explained, he emerged from the operating room after completing an exhausting three hour operation. He was immediately asked to go to the emergency room in order to assist with a diagnosis regarding an accident case. When the doctor arrived in the emergency room, he found an unconscious Professor Smith being attended to by his son, David

David was so upset it was difficult for the doctor to find out exactly what had taken place. Apparently, the professor and his son were out for a Sunday drive when his car was hit by a large truck. The doctor immediately concluded that the professor needed emergency brain surgery, and advised David that a request had already been made for a prominent brain surgeon from the State University to come and operate on his father. Unfortunately, the university medical facility was located 78 miles away, and the professor's condition was such that he might die before the

surgeon arrived.

David pleaded with Dr. Heartache. "I know you're exhausted, but I'm begging you. I'll give you $45,000 if you will operate on my father. Please, please, operate!" The doctor, moved by David's plea, decided to operate. Fighting back fatigue, Dr. Heartache performed valiantly. I certainly earned that fee, the doctor said to himself, as he emerged from the operating room.

The doctor truly put everything he had into the operation, but the injury was too great, and the professor died a few hours after the operation. When David learned what had happened, he fainted.

Two days later, Dr. Heartache received an angry letter from David. "Your incompetence was responsible for my father's death," he wrote. "Obviously, I'm not paying you a red cent.

Try and collect, and I'll make your life a living hell!"

Dr. Heartache feels that a valid contract entitling him to $45,000 was entered into by both parties. He feels that he has earned the fee, and would like to collect. How would you advise the doctor?

In a study of high-achieving high school graduates, the authors of a report surveyed 834 high school graduates who were considered "academic superstars" and 436 graduates who were considered "solid performers." One question on the survey asked the distance from their home to the college they attended.

Assuming it is reasonable to regard these two samples as random samples of academic superstars and solid performers nationwide, use the accompanying data to determine if it is reasonable to conclude that the distribution of responses over the distance from home categories is not the same for academic superstars and solid performers. Use

α = 0.05.

State the null and alternative hypotheses.

H₀: Student group and distance of college from home are independent.
H_a: Student group and distance of college from home are not independent. H₀: Student group and distance of college from home are not independent.
H_a: Student group and distance of college from home are independent.     H₀: The proportions falling into the distance categories are not all the same for the two student groups.
H_a: The proportions falling into the distance categories are the same for the two student groups. H₀: The proportions falling into the distance categories are the same for the two student groups.
H_a: The proportions falling into the distance categories are not all the same for the two student groups.

Calculate the test statistic. (Round your answer to two decimal places.)
χ² =

What is the P-value for the test? (Round your answer to four decimal places.)
P-value =

What can you conclude?

Do not reject H₀. There is not enough evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups. Reject H₀. There is convincing evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups.     Reject H₀. There is convincing evidence to conclude that there is an association between student group and distance of college from home. Do not reject H₀. There is not enough evidence to conclude that there is an association between student group and distance of college from home.

Consider a market demand curve, in which the quantity demanded is on the horizontal axis and the price is on the vertical axis. If the demand curve is flat, then the price elasticity of demand is high in the absolute value. True or False?

The cross-price elasticity of Good X with respect to Good Y is estimated as -0.8. When the price of Good Y suddenly increases, we expect the demand for Good X will decrease. True or False?

We observe the income elasticity for Good X is -1.2. If the government provides extra income to everyone, then we expect the sales of Good X will increase. True or False?

Assume the following model of the economy, with the price level fixed at 1.0:

C = 0.8(Y – T) i = 1000 – 20r

T = 500

G = 1,000

Ms = 1,000

Md/P = 0.5Y – 50ra

A) What are the short-run equilibrium values of Y, and r.

B) Assume that T decreases by 100. By how much will Y increase in short-run equilibrium?

C) Assume that T is back at its original level of 500, but Ms (money supply) increases by 100. By how much will Y increase in short-run equilibrium?

We want to price options using the binomial lattice. The current stock price is 104 and the strike price is 100. Assume that the stock up-trend rate is u=1.2 with probability p=0.4 and the down-trend rate is d=0.8 with probability 1-p=0.6. The annual risk-free rate is r=0.02. Assume that the lenth of a period is one month.

1. Construct a binomial lattice that gives the price of a 5-month European call option.

2. Construct a binomial lattice that gives the price of a 5-month American put option.

Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,188. FICA tax for Social Security is 6.2% and the FICA tax for Medicare is 1.45%. The FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,524.57. What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.)

$378.00

$569.66

$1,136.89

$56.00

$133.23